IBI Income Fund

IBI Income Fund

May 11, 2009 16:11 ET

IBI Income Fund Announces $10 Million Private Placement Offering of Units

TORONTO, ONTARIO--(Marketwire - May 11, 2009) -


IBI Income Fund (TSX:IBG.UN) ("IBI"), announced today it has entered into an agreement with Raymond James Ltd. to sell, on a private placement basis, 775,200 trust units ("Units") at a price of $12.90 per Unit, for gross proceeds to IBI of $10.0 million (the "Financing"). IBI has granted Raymond James an over-allotment option ("Over-allotment Option"), exercisable in whole or in part at any time up to 30 days after closing, to purchase up to an additional 116,280 Units at the same offering price. Should the Over-allotment Option be exercised in full, the total gross proceeds of the offering would be approximately $11.5 million. The Units will be offered pursuant to prospectus and registration exemptions in each of the provinces and territories of Canada, as well as in the United States under applicable private placement exemptions. The Financing is expected to close on or about May 28, 2009 and is subject to regulatory approvals. Concurrent with the Financing, IBI Group Management Partnership will purchase approximately $3 million in Units of the Fund at $12.90 per Unit, which will result in the Partnership's ownership interest in IBI being approximately 26%.

IBI intends to use the net proceeds from the Offering for general corporate purposes, including repayment of debt.

About IBI Income Fund

The Fund holds an indirect 69% interest in IBI Group, a partnership which provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 31% of IBI Group, represented by Class B Units, is owned by IBI Group Management Partnership. On a fully diluted basis, IBI Group Management Partnership has a 49% interest in the Fund.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of IBI Income Fund have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

Contact Information

  • IBI Income Fund
    Allan J. Kamerman
    (416) 596-1930
    (416) 596-8024 (FAX)